In recent years, frozen yogurt has gained popularity as an ice cream substitute, and many business owners are considering setting up shop to sell the frozen treat. However, it’s crucial to take into account if a frozen yogurt business is viable before starting one.
The short answer is yes, a frozen yogurt shop can turn a profit. IBISWorld estimates that the frozen yogurt market will expand by 3.7% each year between 2015 and 2020 and will bring in $2.3 billion in sales in the US alone. This expansion has been influenced by consumer demand for healthier dessert options; frozen yogurt is frequently seen as a better choice than ice cream.
Location, competition, and marketing tactics are just a few of the variables that affect a frozen yogurt shop’s profitability. A prominent location with lots of foot traffic can draw more clients and increase sales. Profitability, however, can also be impacted by rival frozen dessert stores. Effective marketing techniques can aid in attracting and keeping customers, such as social media advertising and loyalty programs.
Whether you choose to create a franchise or open an independent shop, the cost of beginning a frozen yogurt business varies. The cost of starting a frozen yogurt franchise, which includes franchise fees, equipment, and initial inventory, may be anywhere between $150,000 and $500,000, according to Entrepreneur. On the other hand, depending on the store’s size, equipment, and location, opening an independent business might cost anywhere from $10,000 to $50,000 or more.
Similar to frozen yogurt, starting a frozen custard business can be lucrative. With the additional investment of custard-making equipment, the start-up cost of a frozen custard business is comparable to that of a frozen yogurt firm.
There are a few steps you may take to get started if you want to open a small frozen yogurt shop. To find out if there is a need for a frozen yogurt shop, first analyze the local market and competitors. Next, draft a business strategy with a budget, marketing plans, and objectives. Finally, get financing and the licenses and licences you need to launch your firm.
There are numerous choices when it comes to selecting a frozen yogurt franchise. Franchises like Menchie’s, Orange Leaf, and Yogurtland are among the more well-known ones. Before choosing a franchise, it’s crucial to conduct in-depth research on each one and take into account variables like franchise costs, royalties, and support.
In conclusion, a frozen yogurt shop can be successful, but this depends on a number of variables. Whether you choose to create a franchise or open an independent shop, the cost of beginning a frozen yogurt business varies. If you want to open a small frozen yogurt restaurant, you should do market and competitor research in your area, develop a business strategy, find money, and get the required permits and licenses. Consider variables including franchise fees, royalties, and support when deciding whether to open a frozen yogurt business.